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FED ER A L RESERVE BAN K O F N EW YORK
Fiscal Agent of the United States

f Circular No. 7 5 4 2 *1
t

January 2, 1975

J

Offering of $2,000,000,000 of 364-Day Treasury Bills
Dated January 14, 1975

Due January 13, 1976

T o A ll Incorporated B a n k s and T r u s t C om panies, and O thers
Concerned, in the S econd F ederal R eserve D istric t:

Following is the text of a notice issued today by the Treasury Department:
T h e T re a su ry D epartm ent, by this public notice, invites tenders
for $2,000,000,000, or thereabouts, of 364-day T re a su ry bills to be
dated Ja n u a ry 14, 1975, and to m atu re Ja n u a ry 13, 1976 ( C U S I P
No. 912793 Y E 0 ).
T he bills will be issued for cash and in exchange for T re a su ry
bills m aturing Ja n u a ry 14, 1975, outstanding in the am ount of
$1,802,365,000, of w hich G overnm ent accounts and F e d e ral Reserve
B anks, for them selves and as agents of foreign and international
m onetary authorities, presently hold $1,087,535,000. T hese accounts
m ay exchange bills they hold for the bills now being offered a t the
average price of accepted tenders.
T he bills will be issued on a discount basis under com petitive
and noncom petitive bidding as hereinafter provided, and a t m atu rity
their face am ount will be payable w ithout interest. T hey will be
issued in b earer form in denom inations of $10,000, $15,000, $50,000,
$100,000, $500,000 and $1,000,000 (m a tu rity v alue) and in booken try form to designated bidders.
T en d ers will be received a t F ed eral R eserve B anks and
B ranches up to the closing hour, one-th irty p.m., E a s te rn S ta n d ard
time, W ednesday, Ja n u a ry 8 , 1975. T en d ers will not be re ­
ceived a t the T re a su ry D epartm ent, W ashington. E ach tender m ust
be for a m inim um of $10,000. T en d ers over $10,000 m ust be in
m ultiples of $5,000. In the case of com petitive tenders the price
offered m ust be expressed on the basis of 100 , w ith not m ore than
three decim als, e.g., 99.925. F ra c tio n s m ay not be used. I t is urged
th a t tenders be m ade on the p rinted form s and fo rw ard ed in the
special envelopes w hich will be supplied by F ed eral R eserve B anks
or B ranches on application therefor.
B anking institutions and dealers w ho m ake p rim a ry m arkets
in G overnm ent securities and re p o rt daily to the F ed eral R eserve
B ank of N ew Y ork th eir positions w ith respect to G overnm ent
securities and borrow ings thereon m ay subm it tenders fo r account
of custom ers, provided the nam es of the custom ers are set fo rth
in such tenders. O th e rs will not be perm itted to subm it tenders
except for th eir ow n account. T en d ers will be received w ithout
deposit from incorporated banks and tru st com panies and from
responsible and recognized dealers in investm ent securities. T en d ers

from oth ers m ust be accom panied by paym ent of 2 p ercen t of the
face am ount of T re a su ry bills applied for, unless the tenders a re
accom panied by an ex p ress g u a ran ty of paym ent by a n incorporated
bank o r tru s t company.
Im m ediately a fte r the closing hour, tenders w ill be opened a t
the F ed eral R eserve B anks and B ranches, follow ing w hich public
announcem ent will be m ade by the T re a su ry D ep artm en t of the
am ount and price range of accepted bids. O nly those subm itting
com petitive tenders will be advised of the acceptance o r rejection
thereof. T he S e c retary of the T re a su ry expressly reserves the
rig h t to accept o r re je c t any o r all tenders, in w hole o r in part,
and his action in any such respect shall be final. S u b ject to these
reservations, noncom petitive tenders fo r $ 200,000 o r less w ithout
stated price from any one bidder will be accepted in full a t the
average price (in three decim als) of accepted com petitive bids.
S ettlem ent fo r accepted tenders in accordance w ith the bids m ust
be m ade o r com pleted a t the F ed eral R eserve B ank on Ja n u a ry
14, 1975, in cash or other im m ediately available funds o r in a like
face am ount of T re a su ry bills m atu rin g J a n u a ry 14, 1975. C ash
and exchange tenders will receive equal treatm en t. C ash a d ju s t­
m ents will be m ade for differences betw een the p a r value of m a tu r­
ing bills accepted in exchange and the issue price of the new bills.
U nder Sections 4 5 4 (b ) and 1221(5) of the In te rn a l R evenue
Code of 1954, the am ount of discount a t w hich bills issued h e re ­
under are sold is considered to accrue w hen the bills a re sold, r e ­
deem ed o r otherw ise disposed of, and the bills are excluded from
consideration as capital assets. A ccordingly, the ow ner of T re a su ry
bills (o th e r than life insurance com panies) issued hereu n d er m ust
include in his income ta x retu rn , as o rd in ary gain o r loss, the dif­
ference betw een the price paid fo r the bills, w h eth er on original
issue or on subsequent purchase, and the am ount actu ally received
eith er upon sale o r redem ption a t m atu rity d u rin g the taxable year
for w hich the re tu rn is made.
T re a su ry D ep artm en t C ircu lar N o. 418 (c u rre n t revision) and
this notice prescribe the term s of the T re a su ry bills and govern
the conditions of th eir issue. Copies of the c irc u la r m ay be ob­
tained from any F ed eral R eserve B ank o r B ranch.

This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Wednesday, January 8 , 1975, at
the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of
this notice to submit a tender and return it in the enclosed envelope marked “Tender for Treasury Bills.” Tenders not
requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by
telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account.
Settlement must be made in cash or other immediately available funds or in maturing Treasury bills




A

lfred

H

ayes,

President.

( over )

TENDER FOR 364-DAY TREASURY BILLS
Dated January 14, 1975
To

Due January 13, 1976
Dated at

F ed er a l R eserve B a n k of N e w Y o r k ,

Fiscal Agent of the United States.

1975
Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi­
sions of the public notice issued by the Treasury Department inviting tenders for the above-described
Treasury bills, the undersigned hereby ofifers to purchase such Treasury bills in the amount indicated below,
and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below:
D o not fill in both C om petitive and
N o n co m p etitive tenders on one fo rm

COMPETITIVE TENDER

$........................................................ (maturity value)
or any lesser amount that may be awarded.
Price: ..................................................per 100.
(P rice m u st be expressed w ith not m ore than three
decim al places, fo r exam ple, 99.925)

NONCOMPETITIVE TENDER

$....................................................... (maturity value)
( N o t to exceed $200,000 fo r one bidder through all sources)

at the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
Pieces

D enom ination
$

M a tu rity value

□

1. D eliver over the counter to the
undersigned

10,000

□ 2. Ship to the undersigned

Pay m en t will be made as fo llo w s:
□

By charge to our reserve account

□

By cash o r check in im m ediately
available fu n d s on delivery

15,000
□ 3. H o ld in safekeeping (fo r m em ­
ber bank only) in—

50,000

□

Investm ent A ccount

100,000

□ 5. Special in stru c tio n s:

f~] Gpnpral A rrn n n t
500,000

□

1,000,000

(P a ym e n t cannot be made through
T reasury T a x and L oan A cco u n t)

T ru s t A ccount

□ 4. A llotm ent tran sfer (see list attach ed )
(N o changes in delivery instructions
w ill be accepted)

T o tals

The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed
to dispose of in the manner indicated in item 3 above are owned solely by the undersigned.
(Name of subscriber— please print or type)

Insert this tender
in special envelope
marked “Tender for
Treasury Bills”

(Address— incl. City and State)
(Tel. No.)

(Signature of subscriber or authorized signature)
(Title of authorized signer)

(B an k in g institutions subm itting tenders for custom er account m u st list cu sto m ers’ nam es on lines below o r on an attached rid er)
(Name of customer)

(Name of customer)

IN S T R U C T IO N S :
1. N o tender for less than $10,000 will be considered, and each tender m ust be for an even m ultiple of $5,000
(m a tu rity v alu e).
2. O nly banking institutions, and dealers who m ake p rim ary m arkets in G overnm ent securities and rep o rt daily to this Bank
th eir positions w ith respect to G overnm ent securities and bo rro w in g s thereon, m ay subm it tenders for custom er acco u n t; in
doing so, they m ay consolidate com petitive tenders at the same price and m ay consolidate noncom petitive tenders, provided a
list is attach ed show ing the name of each bidder and the am o u n t bid for his account. O th ers will not be perm itted to subm it
tenders except fo r th eir ow n account.
3. If the person m aking the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to m ake the tender, and the signing of the ten d er by an officer of the corporation will be construed as a
represen tatio n by him th a t he has been so authorized. If the tender is made by a partnership, it should be signed by a
m em ber of the firm, w ho should sign in the form “.............................................................................................................. , a copartnership, by
........................................................................................................ . a m em ber of the firm .”
4. T en d ers will be received w ithout deposit from inco rp o rated banks and tru s t com panies and from responsible
and recognized dealers in investm ent securities. T en d ers from others m ust be accom panied by paym ent of 2 percent of
the face am ount of T re a su ry bills applied for, unless the tenders are accom panied by an express g u a ran ty of paym ent
by an in corporated bank o r tru s t company. A ll checks m ust be d raw n to the o rd e r of the F ed eral R eserve B ank of N ew
Y o rk ; checks endorsed to this B ank will not be accepted.
5. If the language of this tender is changed in any respect, which, in the opinion of the S e c retary of the T reasu ry ,
is m aterial, the ten d er m ay be disregarded.